Hinduja for stake in ONGC's Kakinada project

The Hinduja Group is looking at taking majority stake in public sector ONGC's proposed Kakinada refinery project, a top company official said.

"Wherever we go, we do not have anything other than majority stake... we would like to have majority stake," Gopichand P Hinduja, President, Hinduja Group of companies told reporters.

He was responding to a query on the project, after signing a Master Co-operation Agreement between the group's company Ashok Leyland and Nissan Motor Co. Ltd.

He also said the company was discussing the issue with officials.

"Our group company, Gulf Oil would pick up stake in the project," he said.

The president also informed that the Centre had cleared its power project in Vishakapatnam. The project would be based on a Merchant Power Plant.

"So, we would be selling 25 per cent of the power to the state, while we are free to sell the remaining 75 per cent to whoever pays us the best price."

"It would be around 1,040 to 1,200 MW. Experts are working on what would be the most economical one. The project cost is Rs 500 crore and would be completed in about 32 months," he said.

Hinduja said the group would be divesting 49 per cent stake in Hinduja National Power "when the time is right".

According to him, the group was in talks with a foreign insurance service provider for partnering in launching both life and non life insurance products in the country. However, he refused to divulge further details.